The Criterion Method™

An 8-phase proprietary diagnostic built for HVAC operators.

The Criterion Method is Stratum's structured cash conversion diagnostic. It examines eight operational phases, in sequence, to identify exactly where cash is leaking, what it's costing annually, and what the intervention priority should be. The scoring mechanics are proprietary. The framework is not.

The 8 Phases

Every score traces back to one of these.

Phase 01
Cash Cycle
Collection timing, billing cadence, and AR discipline.
Phase 02
Revenue Quality
Service mix, concentration risk, and recurring revenue base.
Phase 03
Billing Discipline
Invoice accuracy, timing, and payment capture at point of service.
Phase 04
Service Infrastructure
Agreement penetration, maintenance program structure, and retention.
Phase 05
Cost Structure
Gross margin by work type, labor efficiency, and parts cost control.
Phase 06
Tech & Systems
Field software utilization, reporting cadence, and data infrastructure.
Phase 07
Owner Dependency
Process documentation, management depth, and operational independence.
Phase 08
Exit Readiness
Valuation awareness, documentation, and transferable value architecture.

Every diagnostic output — Cash Conversion Index, Net Agreement Growth, Float Status — is derived from this framework. Nothing is scored on intuition.

What You Get

Two outputs, one number to act on.

CCI

Cash Conversion Index

A composite score measuring how efficiently revenue converts to collected cash across billing, collections, and cost discipline.

NAG

Net Agreement Growth

A measure of recurring revenue durability — service agreement penetration, retention, and customer concentration risk.

GAP

Float Status

The composite read: Float-Positive, Neutral, or Float-Negative — with an estimated annual dollar gap attached.

The Criterion Diagnostic

Run the diagnostic on your own numbers.

12 questions, 8 phases, results in about four minutes.

Begin the Diagnostic →